Which document provides information about rates, building consents, and resource consent matters for a property?
Correct Answer
D) LIM report
A LIM (Land Information Memorandum) report provides comprehensive information about a property including rates, building consents, resource consents, and other council-held information. It is commonly used as a condition in sale and purchase agreements to allow purchasers to investigate the property's history and compliance status.
Why This Is the Correct Answer
A Land Information Memorandum is issued by the council under s 44A of the Local Government Official Information and Meetings Act 1987 and sets out council-held information such as rates, building and resource consents, and known hazards.
Why the Other Options Are Wrong
Option A: Record of title
The record of title shows ownership and registered interests such as mortgages and easements, not council rates or consent history.
Option B: Registered valuation report
A registered valuation gives an opinion of value; it may mention consents but is not the council's official record of them.
Option C: Building inspection report
A building inspection reports on the physical condition seen on the day; it does not list council-held rates or consent records.
Deep Analysis of This Sale Purchase Question
This question tests knowledge of property information documents crucial in New Zealand real estate transactions. The LIM report is a statutory document under the Local Government Official Information and Meetings Act 1987, providing comprehensive council-held information about a property. Understanding different property documents is essential for real estate agents as they guide clients through due diligence processes. The LIM report serves as a critical tool for purchasers to make informed decisions, containing historical and current information that affects property value and usability. This knowledge directly relates to the Real Estate Agents Act 2008 requirement for agents to act with care, skill, and diligence, ensuring clients receive accurate information about property conditions and compliance status.
Background Knowledge for Sale Purchase
A LIM (Land Information Memorandum) is a report a territorial authority must provide on application under s 44A of the Local Government Official Information and Meetings Act 1987. It covers the matters listed in that section, including rates, building consents and certificates, resource consents, known natural hazards and drainage information. It reflects the council's records on the date it is issued, so it cannot show unconsented work the council does not know about.
Memory Technique
Think of a LIM report as a comprehensive 'menu' of all the land information the council has about a property. Just like a restaurant menu lists all available dishes with details, the LIM lists all council-held information including rates (the 'bill'), building consents (the 'recipes'), and resource consents (the 'ingredients approval').
When you see questions about comprehensive property information from council sources, remember the 'Land Information Menu' - it contains everything the council knows about the property, making it the go-to document for rates, consents, and regulatory matters.
Exam Tip for Sale Purchase
Rates, consents and other council records point to the LIM; ownership and registered interests point to the record of title; physical condition points to a building report.
Real World Application in Sale Purchase
A purchaser wants to buy a property but is concerned about potential building issues and council compliance. Their lawyer includes a LIM condition in the sale and purchase agreement. The LIM report reveals an outstanding building consent for a deck extension and shows the property is in a flood-prone area requiring resource consent for future developments. This information allows the purchaser to negotiate the price or seek resolution of the outstanding consent before settlement, demonstrating the LIM's crucial role in informed decision-making.
Common Mistakes to Avoid on Sale Purchase Questions
- •Confusing LIM reports with building inspection reports
- •Thinking property titles contain council compliance information
- •Assuming valuation reports include detailed consent history
Related Topics & Key Terms
Key Terms:
More Sale Purchase Questions
A property is sold at auction for $850,000 with a 10% deposit required. The successful bidder has concerns about the LIM report after the auction. What is their legal position?
What is the primary purpose of a LIM (Land Information Memorandum) in the sale and purchase process?
What deposit is most commonly agreed in New Zealand residential sale and purchase agreements?
When does an Agreement for Sale and Purchase become unconditional?
In a property auction, when is the sale considered complete?
- → How is the settlement date set in a New Zealand residential sale and purchase?
- → What typically happens to the deposit when an unconditional sale and purchase agreement is signed?
- → During settlement, what document transfers legal ownership of the property from vendor to purchaser?
- → A property is passed in at auction for $800,000 with a reserve price of $850,000. The highest bidder approaches the vendor immediately after. Which statement is most accurate about the subsequent negotiation?
- → When does an Agreement for Sale and Purchase become unconditional if it contains a finance condition with a 10 working day timeframe?
- → What is the typical deposit amount required immediately after a successful auction bid in New Zealand?
- → Under the standard TLANZ/REINZ Agreement for Sale and Purchase, who is typically responsible for paying rates from the settlement date?
- → At an auction, the reserve is $800,000 but bidding stalls at $750,000. The vendor then negotiates with the highest bidder and they agree to sell at $780,000, signing on the auction terms with no conditions. What type of sale is this?
- → A purchaser has included a finance condition with a 10 working day deadline. On day 8, they receive loan pre-approval but final approval is pending. What should they do?
- → What happens if a purchaser fails to pay the deposit by the specified deadline in the Agreement for Sale and Purchase?
People Also Study
Property Law & Legislation
56 questions
Agency Practice
89 questions
Professional Conduct & Ethics
46 questions
Property Management
85 questions